This document provides information about simple interest and compound interest concepts in mathematics. It defines key terms like principal, interest, rate, time and maturity value. Examples are given to illustrate simple interest calculations involving filling in tables with principal, rate, time and interest amounts. Students are asked to complete practice problems calculating simple interest based on given amounts, rates and time periods.

1. GENERAL MATHEMATICS
QUARTER 2 – MODULE 1:
SIMPLE INTEREST AND
COMPOUND
INTEREST
Week 1

2. ILLUSTRATING SIMPLE AND
COMPOUND INTERESTS

3. UNLOCK THE 8-LETTER WORD BY FINDING THE
SIMILARITIES OF EACH OF THE FOLLOWING
ILLUSTRATIONS. WRITE YOUR ANSWER INSIDE
THE BOXES PROVIDED BELOW.

4. HERE ARE SOME IMPORTANT TERMS TO
REMEMBER.
•Interest (I) – the amount paid or earned for
the use of money.
•Simple Interest (Is) – it is the interest that is
computed on the principal and then added to it.

5. • Compound Interest (Ic) – the interest is computed
on the principal and on the accumulated past
interests
•Principal (P) – the amount of money borrowed or
invested on the origin date.
• Rate (r) – the annual rate, usually in percent,
charged by the lender, or rate of increase of the
investment.

6. •Time or Term (t) – It is the amount of time in
years the money is borrowed or invested, length of
time between the origin and maturity dates.
•Maturity value or future value (F) – It is amount
after t years that the lender receives from the
borrower on the maturity date.
•Origin or loan date – The date on which money is
received by the borrower.

7. MATURITY DATE – THE DATE ON WHICH THE
MONEY BORROWED, OR LOAN IS TO BE
COMPLETELY REPAID.
• Lender o creditor – The person (or institution)
that invests the money or makes the funds
available.
•Borrower or debtor – The person (or institution)
that owes the money or avails of the funds from the
lender.

8. SIMPLE INTEREST
I=PxRxt

9. 1. A bank offers 0.25% annual simple
interest rate for a particular deposit. How
much will be earned if 1 million is
deposited in this saving account for 1
year?

10. •How much is the interest is
charged when P50,00 is
borrowed for 9 months at an
annual rate of 10%

11. •When invested at an annual interest
rate of 7%, the amount earned P
11,200 simple interest . How much
money is invested?

12. COMPLETE THE TABLE
PRINCIPA
L
P
RATE
R
TIME
T
INTERES
T
I
? 2.5% 4 15,000
36,000 ? 1.5 4,860
250,000 0.05% ? 275
500,000 12.5% 10 ?

13. SEATWORK 1: COMPLETE THE TABLE
Principal
Amout
Rate Time Interest
2000 5% 3 (1)
(2) 12% 5 20,000
88,000 (3) 4 8,000
500,000 9.5% (4) 285,000
1,000,000 0.5% 12 (5)

14. SOLVE THE PROBLEM
1. How long will an amount of
P50,000 gain a simple
interest of 10,000 at 4% per
annum